Review of business impact for Excise Tax is essential to stay compliant and avoid the penalties for small and manageable business scenarios such as registration, late return filling.
Excise tax is a form of indirect tax levied on specific goods, which are harmful to human health or the environment. Such goods include carbonated drinks, energy drinks and tobacco products.
Excise tax is calculated as a percentage of the excise price of the goods. The excise price of the goods (i.e. the ‘tax base’ before excise is calculated) is the higher of the price stated in a list published by the FTA or the designated retail sales price less any excise tax already included in that price.
EXCISE AUDIT & INQUIRY REQUIREMENTS
Federal Tax Authority may request to submit data relating to Excise Goods, in response in respect of tax period or any specific period they may wish to audit and review. We have come across various cases where registrants have been requested to furnish information in relation to excisable goods. We noted that below mentioned information needed to satisfy the tax audit requirements.
- Statement of excise goods held by the entity as at the beginning of tax period with the detailed break up of Type of item, Quantity and Value for each type of the excise goods held.
- Statement of monthly sales of excise goods for last 12 months before beginning of tax period with a detailed breakup at invoice level and computation of average monthly sales for this period.
- Statement of excise goods by item held at the end of each month for the period of 12 months and computation of average monthly inventory held for this period.
- Statement of excise goods produced or imported during last 12 months.
- Statement of excise goods produced, imported, released from designated zones for the period during tax period with the details of suppliers from whom the purchases made.
- Statement of sale or export of excise goods for the period tax period with the details of type of sales i.e., on cash or on credit.
OUR EXCISE SERVICES INCLUDES
- Excise Registration:
An Importer, producer, warehouse keeper or stockpiler are required to register for Excise should they deal in any excisable product listed on the FTA website. We advise you on the requirements for Excise registration with Federal Tax Authority and make Excise registration simple for you.
- Excise Impact Assessment:
Chartered House Tax specialists will review your inventory transactions to determine Excise tax applicability on your business. We will advise you on the Excise Accounting, record management, IT system changes, policies and procedures and Excise audit file (#FAF) requirements to make you compliant.
- Excise Return filling:
A registrant is required to file Excise return on 28th day following end of tax period. Excise return filling require a review of accuracy, completeness, valuation and cut-off for your inventory, sales, purchase and production losses as per the provisions of the law. We offer preparation, review and submission service for your Excise return professionally at affordable price.
- Excise Audit and Review:
Tax documentation is critical for Excise compliance. If your business come under scrutiny, Tax officials will require proof against return period under scrutiny to establish you file your return accurately with complete transactions. We advise you on FAF requirements and also maintain records on your behalf
- Excise Support-Retainer Model:
Adoption with Excise is on-going process and business encounter every day some unique transactions which might require special treatment for recording, tax rate and claimability of Excise refunds. We offer flexible solutions to business to engage to seek transactional advise as and when needed.